How to Trade PepsiCo After Q3 Performance
PepsiCo owns brands such as Pepsi, 7 Up, Gatorade, Quaker Foods and snacks, Doritos and many more. Headquartered in New York, PepsiCo is involved in the manufacturing, distribution and marketing of its food and beverage items.
Learn more about PepsiCo's fiscal third-quarter performance and what the analysts are forecasting for the stock.
|Symbol for Invest.MT5 Account:||PEP|
|Date of Idea:||10 October 2023|
|Time Line:||1 - 6 months|
|Position Size for Invest.MT5 Account:||Max 5%|
- The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
PepsiCo Fiscal Q3 2023 Performance
Here are some of the key highlights from the latest fiscal third-quarter earnings report from PepsiCo:
- Earnings per share of $2.25 vs $2.15 expected
- Revenue of $23.45 billion vs $23.39 billion expected
- Third-quarter net income of $3.09 billion, up from $2.7 billion a year earlier
- Net sales up 6.7% to $23.45 billion
- North American beverage sales volume down 6%
PepsiCo posted a much better-than-expected third-quarter earnings report beating analyst forecasts on earnings per share and revenue. The food and beverage company also raised its full-year profit forecast which has been boosted by passing on price increases to its customers.
The price increases averaged around 11% over the third quarter which helped it to post better-than-expected group revenue by a small amount. However, a concern is that the price increases caused a slowdown in sales volume of 6%.
The data highlights that more people may have decided to not purchase a certain item due to the higher price. If PepsiCo continue to pass on higher costs to consumers it could have a very negative impact on its sales volume and may start to affect its full-year forecasts and earnings results.
The squeeze on businesses and consumers due to higher inflation is a trend to watch. Therefore, tracking macroeconomic data is important to ascertain how it will affect supply and demand pressures in the economy.
PepsiCo Stock Forecast - What do the Analysts Say?
According to analysts polled by TipRanks for a PepsiCo stock forecast in the past 3 months, there are currently 11 buy, 5 hold and 0 sell ratings on the stock. The highest price level for a PepsiCo stock forecast is $225.00 with the lowest price target at $170.00.
The average price target for a PepsiCo stock forecast is $197.27.
An Example Trading Idea for the PepsiCo Stock Price
An example trading idea for the PepsiCo share price could be as follows:
- Buy the stock on a break above the post-earnings high at $165.00 to allow for volatility.
- Target just below the highest analyst price target of $225.00.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 1 – 6 months
- If you buy 10 PepsiCo shares:
- If target is reached = $600.00 potential profit [($225.00 - $165.00) * 10 shares].
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering how sensitive PepsiCo shares can be to consumer demand.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.
With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in PepsiCo stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.
There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall!
How to Buy PepsiCo Stock in 4 Steps
With Admirals, you can buy shares in companies like PepsiCo with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.
- Open an account with Admirals to access the dashboard.
- Click on Trade on one of your live or demo accounts to open the web platform.
- Search for your stock in the search window at the top right to view the live price chart.
- Click Create New Order from the bottom of the screen to open the trading ticket.
Click on the banner below to trade PepsiCo stock today! ▼▼▼
Do You See the PepsiCo Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance PepsiCo share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.
This means you can trade long and short to potentially profit from rising and falling stock prices.
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